Most retirees who had their county contribution to health insurance cut to ‘up to $500’ in 2009 were told when they were hired that the county would pay all their health insurance in retirement and would also pay all the Medicare Part B cost. These were major recruitment incentives. Then sometime later, the unions agreed to reduce the contribution to 85% for employees. Since retirees were tied to employees for purposes of health insurance, that changed the contribution for retirees as well. However, 85% was still a generous contribution and SCARE did not object.

Then in 2008, OPEB came along and the county wanted to limit its unfunded liability for post-employment benefits which included health insurance. The county cut the contribution to employees and retirees to ‘up to $500/month’. It also froze the Medicare Part B allowance at the current cost at that time which was $96. That cost is $203 in 2026.

The unions and SCARE both opposed that change and since the employees had the ability to strike, the county ended up giving employees a $600/month pensionable cash allowance. This had a negative effect on the retirement fund as it was not prefunded, but it kept the employees relatively happy. The unions were still supportive of the retirees and there were numerous meetings with the county, unions and SCARE which produced no change in county offer. When SCARE started to object to these changes and then filed a lawsuit, the county offered the unions extra money if they would sign agreement that they would not support retirees. All unions except SCLEA took the money and signed the agreement not to support retirees. The county paid $1,374,900 for this agreement.

The SCARE lawsuit dragged on until 2016 and was very costly. SCARE was a small organization and even though many of our members voluntarily contributed towards the cost, after several years, we ended up owing attorneys a million dollars. The county had no such problem. The courts ignored all the documents we submitted to show what the county had promised to pay. So, in 2016, we went into mediation. This lasted until midnight and the county basically laid the current agreement on us. They would not budge. They agreed to pay ‘up to $500’ for 10 years, then decrease it to $200 for 15 years and then make no more contributions after 2041. In a recent presentation before the Board of Supervisors, the CAO said SCARE asked for this agreement. NO. It was imposed upon us as we could not fight any longer. SCARE sued to get more than $500, not less. In the settlement agreement, all people who retired before July 1, 2016, would be covered by the agreement except for people who worked for the superior court and retired after 2009 as the courts did not cut their contribution for health insurance.

Unfortunately, at the same time these cuts were being made to the county contribution for health insurance, COLAs for retirees ended. A perfect storm for people who had worked for the county serving the community for 20-30 years. While there is now legislation being proposed that would allow the county more flexibility in giving and paying for COLAs, meaning they can exclude part of the retirees who are eligible for a COLA under current law, but at least some retirees will get a COLA rather than no one getting one. There will be no COLAs in 2026, maybe longer depending on how long it takes legislation to pass. Half of the retirees covered by the settlement have pensions under $2400, some much less.

Meanwhile, the county continued to pay $500 to retirees who retired after June 30, 2016. And to this day, they continue to do so although Safety members now get a flat $500 instead of the ‘up to $500’ that other retirees get. Safety had to give up the $96 Medicare Part B reimbursement to get the flat $500.

And unfortunately, we are no longer tied to employees for whom the county pays $1032 for 1, $2064 for 2 and $2,917 for 3. This means that unless they are in the Kaiser HMO, an employee pays nothing for their health insurance. Only about 850 employees out of approximately 4,300 employees or 20% pay anything for their health insurance.

Meanwhile, retirees who have lost 33% to 83% of their purchasing power are facing a reduction to ‘up to $200’ as of May 29, 2026. The least expensive Medicare insurance in FY26-27 is $382/month for 1 person in Kaiser which still has the most retirees in it and about half of those are covering a dependent so cost would be $764. Anthem which had been the least expensive Medicare plan increased by 45%. This will have a huge impact on affected retirees but especially those who cover a spouse. Anthem has over 100 retirees who cover their spouse and AARP/UHC has even more. The AARP/UHC plan used to be our low-cost plan, but it has gotten expensive with some retirees already paying more than $500. There are almost 200 covering their spouse. So $200 will leave a large share of cost each month for single retirees and a huge share of cost for those who cover their spouse. This will affect the people who have the lowest pensions and have lost the most purchasing power.

And not all retirees are Medicare eligible. Safety members retire in their 50’s. About 30% of safety members end up on job related disability retirement so they may be even younger plus their retirement is less than regular service retirements. Cost for these retirees is $1281 for Kaiser, $1010 for Sutter and $894 for WHA. Plus this group is more likely to have a family and need to cover them.

Carol Bauer and I, who were very involved in the lawsuit, both feel that the County is still punishing SCARE for having the gall to sue them.